# Is a client using a power of attorney a red flag in UAE real estate?

**URL:** <https://www.amlfaqs.com/t/is-a-client-using-a-power-of-attorney-a-red-flag-in-uae-real-estate/2155>\
**Category:** UAE\
**Tags:** red-flags, cdd, real-estate\
**Created:** [September 9, 2026, 5:36pm UTC](https://www.amlfaqs.com/t/is-a-client-using-a-power-of-attorney-a-red-flag-in-uae-real-estate/2155 "2026-09-09T17:36:30Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Monika](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/monika/32/200_2.png) [@Monika](https://www.amlfaqs.com/u/Monika)\
**Post date:** [September 9, 2026, 5:36pm UTC](https://www.amlfaqs.com/t/is-a-client-using-a-power-of-attorney-a-red-flag-in-uae-real-estate/2155/1 "2026-09-09T17:36:31Z")

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Is a client using a power of attorney a red flag in UAE real estate?

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**Author:** ![Monika](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/monika/32/200_2.png) [@Monika](https://www.amlfaqs.com/u/Monika)\
**Post date:** [September 9, 2026, 5:36pm UTC](https://www.amlfaqs.com/t/is-a-client-using-a-power-of-attorney-a-red-flag-in-uae-real-estate/2155/2 "2026-09-09T17:36:33Z")

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Not on its own, but it recurs across the case studies and the FIU typologies as a feature of higher-risk transactions. The Supplemental Guidance flags instructions routed entirely through legal representatives without valid confidentiality or legal privilege justification, and a client who avoids direct interaction without a clear explanation.

The UAEFIU typologies report gives the pattern more shape. It describes third parties holding power of attorney for non-resident individuals and acting on behalf of the property’s beneficiary, brokers and tax advisers holding power of attorney for foreign offshore companies buying and selling UAE property, and non-residents issuing power of attorney to a broker and then asking the same broker to record a sale below actual value.

So the question to ask is not whether a power of attorney exists but why. A legitimate power of attorney has a reason a client can explain. One that exists to keep the beneficiary off the paperwork does not.

**Legal Reference (source document):**  
· [Supplemental Guidance for Real Estate Agents and Brokers, Ministry of Economy and Tourism, March 2026](https://www.moec.gov.ae)  
· [Cabinet Resolution No. 134 of 2025, Executive Regulations of Federal Decree-Law No. 10 of 2025](https://uaelegislation.gov.ae)

_Scope note: powers of attorney are ordinary in UAE property transactions. The indicator concerns the absence of a credible reason for their use._

Further reading: [Identifying who really controls a transaction](https://amluae.com/the-complete-guide-to-the-ultimate-beneficial-owner-verification/)

**Related questions on [amlfaqs.com](http://amlfaqs.com):**  
· [What do the UAE real estate case studies have in common?](https://www.amlfaqs.com/t/2154)  
· [How should a UAE real estate agent treat third-party funding from a family company?](https://www.amlfaqs.com/t/2148)  
· [Is a client withdrawing after enhanced due diligence a red flag in UAE real estate?](https://www.amlfaqs.com/t/2119)

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**Author:** ![Monika](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/monika/32/200_2.png) [@Monika](https://www.amlfaqs.com/u/Monika)\
**Post date:** [September 9, 2026, 5:36pm UTC](https://www.amlfaqs.com/t/is-a-client-using-a-power-of-attorney-a-red-flag-in-uae-real-estate/2155/3 "2026-09-09T17:36:51Z")

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**Author:** ![Monika](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/monika/32/200_2.png) [@Monika](https://www.amlfaqs.com/u/Monika)\
**Post date:** [September 19, 2026, 10:31am UTC](https://www.amlfaqs.com/t/is-a-client-using-a-power-of-attorney-a-red-flag-in-uae-real-estate/2155/4 "2026-09-19T10:31:52Z")

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